Buy a chalet with your gold

October 3, 2011

As you can imagine the current state of the market for property in the Alps is high on our list of topics of conversation. We are always happy to express our opinion to anyone that asks. It’s normally journalists, though sometimes it’s people looking to buy. In the second case I often get the feeling that the buyer thinks they are hearing too much “spin” as the reality on the ground in the Alps often differs marketly from the reality where the buyer happens to live.

This morning we had a long conversation with the bank we work with. BNP Paribas they commission a yearly report on the subject and the results are just out. A summary is available on their website. As is always the case with these reports, the figures are already out of date, they deal with 2010. A more current view can be obtained by talking to the agents to get their gut feelings and anectotal quotes.

A Chamonix viewThis view comes for free with a very reasonable priced “estate” in Chamonix.

So here are some quotes from Alpine Property. They concern the area we cover, so the Haute Savoie, which includes the likes of Chamonix, St Gervais, Megeve, La Clusaz, Grand Bornand, Samoens, Les Carroz, Flaine, Les Gets, Morzine, St Jean d’Aulps and Chatel.

“The Swiss are buying in the Northern Alps, it’s not a surprise, the Swiss Franc is so strong they can buy 30% more than they could last year”

“The French are back! After a fairly long time out of the market they are happy to buy second homes,

“Francophone buyers make up 50% of our sales”

“There are plenty of people out there willing to invest 1m+ euros in second homes in the Alps”

“The summer is now almost as important as the winter, that’s not to say that the summer market in the Alps would exist without the winter market, it’s just that the modern Alpine purchaser values the summer activities almost as highly as the winter ones”

Chalet Sochi

Chalet Sochi, shown here as an illustration of what is available at the top end of the market, full details on the Alpine Property website.

That’s 5 quotes, that’ll do for now. My comments as far as the BNP report goes are that in 2010 the market recovered from 2009. In fact we would say the market crashed in 2008 (that’s not news), this hit the 2009 figures hard and now the figures for property sales in  2010 illustrate the  good recovery, almost back to the peaks of 2007. We can add to that and say that 2011 will be better still.

As far as prices go we saw some quite significant price falls in the outlying towns, they have stabilised now but there are still some great bargains to be had. For instance take a look at:

Chez Patou, 295,000 €uros in St Jean d’Aulps

A character property in need of renovation, situated on a sunny plot with great views.

Full details can be found at the Alpine Property website.

Even in the established towns such as Morzine there are bargains, look at the following property, we haven’t seen anything like this (at this price) for 5 years.

Chalet Amis, 399,000 €uros in Morzine

A 3 bedroom chalet on the ski bus route in Montriond

Full details can be found on the Alpine Property website

This all sounds quite upbeat doesn’t it? The property sales bear this out. The owners know this too, they are pricing their chalets “to sell” but not negotiating a whole lot. This might sound surprising to the British buyer who is fed a constant stream of gloom from the press. There are plenty of people who instead of investing their money in the stock market or gold are putting it into the euro in the form of bricks and mortar.

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Posted by Gareth

Day to day in the Alps

September 22, 2011

I’ve been meaning to blog these pictures for a while. The beautiful weather we are having promoted me to get on with it. On the weekend we had some cold wet weather, the upshot is that when the sun returned on Monday the vistas were incredible.

This picture has was taken by the webcam at 10am on Monday 19/9/2011, it’s situated at 2120m between Samoens and Flaine.

By Thursday afternoon almost all the snow has gone.

If you’d like to see the current picture, here is the link. http://www.webcam-hd.com/grand-massif_samoens-tete-des-saix.php

Which brings me to the photos I had in mind. The first was taken at the begining of December last year.

It was taken by one of the Alpine Property agents, advertising an apartment in St Jean d’Aulps, Apt Bayard, it reminds me of something Russian?

Followed by this one, taken a day later, by a photographer who works with the Tourist Office in St Jean d’Aulps, 100m away from the point of view used above.

Now I know St Jean d’Aulps is pretty, but I would not go beyond that, this photographer makes this little village look world class. Take a look at the albums on this link

http://www.valleedaulps.com/galleryFlash/index.php?critere_album=GALSAI|GHIVER&langue=FR&code_album=MONTHIVE

The difference a day makes…..

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Posted by Gareth

Les Carroz in the Grand Massif

January 30, 2011

A HIDDEN GEM – LES CARROZ IN THE GRAND MASSIF

by Liz Owens

It never ceases to amaze me how Les Carroz has remained such a well kept secret. It is such a hidden gem! It seems that this secret is out though….this January edition of the Easyjet magazine has featured it as as one of ’4 fabulous European ski resorts’ ‘to slope off for a ski break’ http://www.ink-live.com/emagazines/easyjet-inflight/2011/jan/

It is renowned for having some of the best snow in Europe despite being a medium height resort. Even now after a whole month without significant dumps of snow, you can still ski right back down to the bottom into the village whilst many other resorts have become unskiable low down. This is not only due to its micro-climate, being in such close proximity to Mont Blanc but also to the phenomenal abilities of those tending the slopes whilst we are relaxing at the end of a hard day’s ski. Visitors from other resorts are amazed at the condition of our slopes!

Les Carroz is in the Grand Massif, just 45 minutes from Geneva and one of the closest resorts time-wise from the UK so is great for short breaks too. No long transfers! If you leave the UK on an early morning flight you can be skiing the very same afternoon. It has heaps of stunning skiing for all levels within the tree-line and has 265km of marked pistes and loads of fabulous off-piste to explore too. It is a short ski over to Flaine for high altitude skiing giving it access to one of the longest runs in Europe, a 15km blue run through the most magnificent nature reserve. An absolute must is stopping halfway down and being picked up by Lolo from the Chalet du Lac de Gers. She’ll throw you a rope and pull you up the mountain behind her skidoo to the cosy restaurant with the most amazing views and wonderful meals!

P9020127

The Chalet du Lac de Gers in autumn.

Having recently moved away from Les Carroz after 9 wonderful years, I now appreciate fully how spoilt we were there and realise all the true splendours of this beautiful village nestling on the mountainside. Each year there is more investment and each year more thought goes into offering the visitor a huge variety of activities to choose from whilst maintaining its authentic Frenchness.

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Posted by Gareth

Samoëns resort review

November 4, 2010

Sixt fer a Cheval taken by Sian

Sixt-Fer-a-Cheval, in the Samoëns valley

Years ago Samoëns used to be on my list of “undiscovered” towns in the French Alps. That’s not the case any more. It’s well established with a section of the British market. It’s still on my list of places I’d choose to live if I was starting afresh in the Haute Savoie.

In fact, just recently, the Alpine Property team was discussing the general state of the market and Samoëns came out as “very strong”, this was based on the fact that the prices had not come down along with the general trend. Obviously this makes things hard for the buyers but it does show the sellers are felling happy and secure in their properties.

Samoens village square

Samoëns town square

Valérie Maes from our Samoens office recently spotted the following article in the Times

Is this the prettiest resort in the Alps?

Samoëns is a medieval delight and a joy from top to bottom, says Felix Milns of  The Times – 16th October 2010.

I’ve included an extract below, the full article is on the Times website.

http://www.thetimes.co.uk/tto/travel/holidays/wintersports/article2768894.ece

but you’ll have to pay to view it…..

“It is a medieval village with a classical square. An historical monument and a place where ancient stonemasons used to perfect their art. Samoëns would be one of the Alps’ most beautiful villages in any light; being a ski resort makes it doubly so.

And it is not just any ski resort. It is part of the Grand Massif, with 165 miles of pistes the fifth largest ski area in France.

The region is better known to the British for purpose-built Flaine, although Samoëns is a far more appealing base. It is something of an undiscovered freeride paradise — and the resort now wants to push itself as something more than a pretty-pretty place”

I could not agree more. The following picture was taken by me on “one of the best days of season” in 2009. This is the top of the Gers bowl, truly and off piste paradise.

IMG_9453

An this picture at the bottom of the bowl on the same day.

IMG_9487

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Posted by Gareth

How do I get a rental return on my property?

September 3, 2010

Virtually all the properties we sell are sold freehold (accept the Lease-back development in Avoriaz) and there will not be any restrictions on sub-letting, in fact gaining a rental return is entirely normal.

As far as renting via an agency is concerned there are many to choose from in each town and many methods. Much of what I have written below is Morzine biased, this is where I work!Studio apartment walking distance from the lift in Praz sur Arly

There are a number rental options, each with advantages and disadvantages. They are not all available to all properties! I will list them as I see them. The first offers lowest risk for least return, the balance moves from return to risk as you descend the list!

1. You can choose to rent your apartment on a yearly basis, for a fixed fee to a company that specialises in self-catering holidays. You an negotiate some weeks for yourself or you can negotiate a discount for weeks you want to rent.

Example: Alptitude, a specialist in Morzine

http://www.alptitude.com/index.php?page=page0&season=winter&lang=en

Example: Holiday in the Alps a specialist in St Gervais
http://www.holidayinalps.com/

Advantages:

  • Most secure form of rental return
  • If you choose the tenant carefully they will look after the property well, dealing with maintenance issues, taxes, Internet etc.
  • Minimum input from the owner

Disadvantages

  • Offers the lowest returns
  • Property will need to be in a good location, this type of company will see that as a priority.

2. You can use one of the independent chalet operators in the area, they often have one chalet that they cater and then up to a dozen they arrange as self-catering. This type of company will often try to negotiate a percentage  fee (up to 30%), for this they will arrange the booking, key holding and the cleaning etc.

Example: The Great Escape

http://www.thegreatescapemorzine.co.uk/accommodation-morzine.htm

Example: Mountain Highs

http://www.mountainhighs.co.uk/SelfCateredHoliday.htm

Example: Snow and Trek

http://snowandtrek-morzine.com/self-catered/index.php

Example: Ski Fusion (based in Les Carroz)
http://www.skifusion.co.uk/

Advantages

  • There may be the occasional unbooked week that could be used by the owner for a cheap holiday at the last-minute.
  • More flexibility for booking in friends etc.
  • If there are good bookings this can offer better returns than choice 1

Disadvantages

  • Riskier for the owner as they don’t offer any rental guarantees, this risk can be reduced by choosing an established company.

3. You can use an Internet based agent who will handle all the booking and cleaning, in theory for a lower percentage fee (about 20%)

Example: White Peak a specialist in Chatel
http://www.white-peak.com/

Example: Alps Accommodation a specialist in Samoens. http://www.alpsaccommodation.com/

Holiday Lettings has lots of advice on the subject. http://www.holidaylettings.co.uk/resources/owner_advice/a-1/

http://www.morzinelets.com/

http://www.skiweekends.com/pages/resorts/morzine.aspx?ResortID=13

http://www.independentmountain.com/

http://www.alplets.com/

Advantages

  • There may be the occasional unbooked week that could be used by the owner for a cheap holiday at the last-minute.
  • More flexibility for booking in friends etc.
  • If there are good bookings this can offer better returns than choice 2
  • Internet based administration can be convenient

Disadvantages

  • Riskier for the owner as they don’t offer any rental guarantees, this risk can be reduced by choosing an established company.
  • If the agency does not care about your property the wear and tear can be quite high. This can depend on their clientèle too.
  • Choose your Internet based agent carefully, they can be excellent but there is more room here for cowboys.

A duplex apartment in a chalet with views of ski slopes and Mont Blanc.

4. You could use an Internet based “Bulletin Board”, these businesses charge a fee for you to advertise, you handle the booking and arrange cleaning and key holding via a local person or agency. My Mum uses Owners Direct for a property on the outskirts of Morzine, it costs £200 or so to advertise, she does very well and uses a local girl for the cleaning etc. This method is a lot of work for the her, offers the renter no guarantees (they can’t book with a credit card and the owner has no form of bonding) but can give the best returns.

Examples:

http://www.chaletfinder.co.uk/

http://www.ownersdirect.co.uk/

Advantages

  • There may be the occasional unbooked week that could be used by the owner for a cheap holiday at the last minute.
  • More flexibility for booking in friends etc.
  • If there are good bookings this can offer better returns than choice 3
  • More “hands on” can be more fun and it may give the owner the chance to “vet” the occupiers.

Disadvantages

  • Riskier for the owner as there are no rental guarantees.
  • The owner will have to find local people to deal with the changeovers / cleaning and any problems.
  • If there are problems or damage the owner might be called upon to arbitrate, this can be difficult on the phone!

A 2 bedroom apartment on the ski bus route close to the pistes

5. The traditional method, use one of the local French estate agents or the local Tourist Information Bureau , they will take a fee (about 25%) and handle the bookings and cleaning for you. This should probably be put between 2 and 3 in the income VS risk list.

Advantages

  • An established system, will probably be entirely legal.
  • Local agents normally have very good contacts with local tradesmen.
  • You may find that a particular agent will have an affiliation with a particular apartment block, this can help.

Disadvantages

  • No guarantees though, the owner will take all the risk. You will do better in the best locations. You might get nothing in a bad location!
  • Just because the agent has good contacts with local tradesmen it does not mean any maintenance work will come cheap.
  • Choose wisely, not all agents are fully Internet or email aware yet, this can come as a shock.

Confused? You shouldn’t be. I am just illustrating how this is a very mature market and that there are a lot of options open to you.

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Posted by Gareth

Moving to the Alps

March 30, 2009
autumn-walk1

Autumn walk '08

We often get asked about how to go about setting up a chalet business in the Alps. Often the underlying question is “I’d like to come and live in the Alps, how can I make a living?”. Obviously the subject is pretty vast and there would probably be a market for a book on the subject. There is certainly a market for loads of magazines and websites. Here follows my “quick” reply.

  1. There are many ways to earn a living whilst living in the mountains. One of them is to run a catered chalet business. It may be the least profitable though, especially when you take into account the hours involved.
  2. If you happen to have a million Euros in cash handy then it is a fairly reasonable way to spend your time. You invest the money in a chalet, you make a living from the income the business provides and if you invest wisely (and if the market plays ball) your capital investment can grow.
  3. If you are very handy and speak reasonable French you could buy a renovation project (200,000 to 400,000 Euros then 100,000 to 200,000 Euros on materials), you can then renovate yourself and turn your investment of time and money into something worthwhile. Don’t imagine you can get away without speaking French though; you’ll have to deal with planning applications, French tax, French regulations (health and safety etc), French electricians and your neighbours! Employing builders to do the work and taking out a large mortgage can really mess up the finances.

If dead set on the “Chalet Business” route then consider:

  1. Getting a job working for someone else. You’ll get to know the business, make the mistakes for someone else! You’ll get to know the area too and might find yourself a property when “on the ground”.
  2. Taking 3 months off to tour around the Alps, start with getting to know the areas you might be interested in, then home in on one and concentrate your search on that. Start after the February holidays so that’ll leave you with March/April/May, you’ll be getting serious towards the end of the season – just when people have a bit more time to spend with you. Come to think of it – May can be a bad month – too many bank holidays – difficult to get the local population to concentrate!

autumn-alpine-walk

Autumn walk '08

Within Alpine Property we have a lot of expertise in your area of interest. All the businesses mentioned are “legit” French business – none of them are “British” businesses operating in France!

  • Steve Norris – MD, fluent French speaker, actually seems to enjoy French bureaucracy. Loves France more than the French – oddly that is quite an unusual trait amongst the British Ex-Pats In France. Second business www.alptitude.com
  • Gareth Jefferies – Ops Director, second businesses www.endlessride.com and www.endlesstrails.co.uk
  • Lee Massey, second business, project managing new build and renovation projects.
  • Claudia Buttet, Dutch/French/English speaker, project manager, chalet builder, long time estate agent.
  • Denis Barbier, fist of all a chalet builder (it’s in the blood), http://www.alpes-chalets74.com/knows everything there is to know on the subject.

So as far as tradesmen are concerned we can certainly point you in the right direction. It would depend on which area you settled. For the Portes du Soleil it would be Claudia, Lee or Gareth that can advise. For Samoëns it would be Denis. If you settle on Chamonix or Megève it would be Jean-Christophe Skiera or for the Aravis, Emma Casanova (her second business is chalet and apartment management). If it was Les Carroz then Richard Owens (another with a good relevant second business – http://www.lacortiena.com/.

The pictures of the “Autumn Walk” were taken on a walk above Morzine in November ’08, Steve and Gareth “bunk off” work for the day. We were back at our desks by lunchtime! All the pictures can be found here.

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Posted by Gareth

Golf in the Haute Savoie

February 25, 2009

JC Skiera is very keen on a number of sports, one of which is golf! Here is his review of the golfing opportunites around our region (the Haute Savoie) of the Alps.

Chamonix : an interesting and very playable course set in stunning scenery. Not that posh in comparison to some of the others but expensive green fees in peak season (July – August), circa 65 euros, cheaper the rest of the time. I am a member so I’m a bit biased. Really nice restaurant and friendly staff.

Megève : definitely posh but less interesting as a golf course, the greens are often in poor condition. High green fees.

Annecy : two courses around the lake : Talloires : expensive in high season, a short but hilly mountain-type course kept in excellent condition, especially the greens (which are notoriously small). Giez : longer and more playable “parkland” course, worth a visit, friendly atmosphere and decent pro-shop (a rarity).

Evian Masters : splendid championship course with fantastic practice facilities but very expensive in Summer. Best time to play is just after they’ve had the Ladies Masters.

Esery (near Bonneville along the M40 motorway) : really nice and fairly challenging parkland course, super fast and very big greens, superb club house, shop and restaurant. Absolutely worth a try.

Divonne : haven’t tried this one but my mate who is a scratch golfer says it is better than Evian.

Bossey (at the foot of the Saleve mountain near the Swiss border) : very challenging course, Jean Van de Velde is a regular!

Aix Les Bains, 30 minutes from Annecy, old parkland course with character and in good condition. Playable throughout the year.

The 2 others are Flaine and Les Gets, useful if you are staying nearby but not really comparable to the others.

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Posted by Gareth

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